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Saudi Arabia‏

 
   
Executive Summary
Saudi Arabia (officially Kingdom of Saudi Arabia) is the largest Arab country of the Middle East. It is bordered by Jordan and Iraq on the north and northeast, Kuwait, Qatar, Bahrain and the United Arab Emirates on the east, Oman on the southeast, and Yemen on the south. The Persian Gulf lies to the northeast and the Red Sea to its west. It has an estimated population of 28 million, and its size is approximately 2,149,690 square kilometres (830,000 sq mi).

The Kingdom is sometimes called "The Land of the Two Holy Mosques" in reference to Mecca and Medina, the two holiest places in Islam. The two mosques are Masjid al-Haram and Masjid Al-Nabawi. The current Kingdom was founded by Abdul-Aziz bin Saud, whose efforts began in 1902 when he captured the Al-Saud’s ancestral home of Riyadh, and culminated in 1932 with the proclamation and recognition of the Kingdom of Saudi Arabia, though its national origins go back as far as 1744 with the establishment of the First Saudi State.

Petroleum exports fuel the Saudi economy.[5] Oil accounts for more than 90 percent of exports and nearly 75 percent of government revenues, facilitating the creation of a welfare state,[6][7] which the government has found difficult to fund during periods of low oil prices.

Geography
The Kingdom occupies about 80 percent of the Arabian peninsula. In 2000 Saudi Arabia and Yemen signed an agreement to settle their long-running border dispute.[8] A significant length of the country's southern borders with the United Arab Emirates, and Oman, are not precisely defined or marked, so the exact size of the country remains unknown. The Saudi government's estimate is 2,217,949 km2 (856,355 sq mi). Other reputable estimates vary between 1,960,582 km2 (756,985 sq mi)[9] and 2,240,000 km2 (864,869 sq mi). The kingdom is commonly listed as the world's 14th largest state.

Saudi Arabia's geography is varied. From the humid western coastal region (Tihamah) on the Red Sea, the land rises from sea level to a peninsula-long mountain range (Jabal al-Hejaz) beyond which lies the plateau of Nejd in the center. The southwestern 'Asir region has mountains as high as 3,000 m (9,843 ft) and is known for having the greenest and freshest climate in all of the country, one that attracts many Saudis to resorts such as Abha in the summer months. The east is primarily rocky or sandy lowland continuing to the shores of the Persian Gulf. The geographically hostile Rub' al Khali ("Empty Quarter") desert along the country's imprecisely defined southern borders contains almost no life.

Mostly uninhabited, much of the nation's landmass consists of desert and semi-arid regions, with a dwindling traditional Bedouin population. In these parts of the country, vegetation is limited to weeds, xerophytic herbs and shrubs. Less than two percent of the kingdom's total area is arable land. Population centers are mainly located along the eastern and western coasts and densely populated interior oases such as Hofuf and Buraydah. In some extended areas, primarily the Rub' al-Khali and the Arabian Desert, there is no population whatsoever, although the petroleum industry has constructed planned communities there. Saudi Arabia has no permanent year-round rivers or lakes; however, its coastline extends for 2,640 km (1,640 mi) and, along the Red Sea, harbors world-class coral reefs, including the Gulf of Aqaba.

Map, Flag and Coat of Arm


Types of Company

There are two main types of companies under the Saudi Arabian Companies Law,
The joint stock company (JSC)
The limited liability company (LLC).
The latter is sometimes favoured as the borrowing vehicle in limited recourse financings because of its faster incorporation process and lower capital requirement. But in certain circumstances, Article 180 of the Companies Law could lift the corporate veil of an LLC and impinge the LLC’s liabilities on its shareholders.

Tax Structure in the Kingdom of Saudi Arabi

Corporate Income Tax

Rate (%)

Companies Engaged in Natural Gas Investment Activities

30 to 85 (a)

Entities engaged in Oil and Other Hydrocarbon Production

85

Other Companies

20

Capital Gains Tax Rate (%)

20

Withholding Tax (%)  (b)

Dividends

5

Interest

5

Royalties

15

Net Operating Losses (Years)

 

Carryback

0

Carryforward

Unlimited (c)
 
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